WAB
AH ambassador
I agree with you on most occasions and respect your views but this is not totally about choices.
Capitalism love it or hate it (I never said evil) is a system where spending money is the biggest driver.
If everyone would live like you or Scott this country wouldn't function or be prosperous as today.
It's a great system but it wouldn't exist without people borrowing and living beyond their means which is encouraged.
Also having safety nets in a society has nothing to do with socialism which is generally misunderstood or used politically.
Socialism is defined as a political system in which the means of production, distribution and exchange are owned and operated by the community as a whole, for the community.
You can easily have the safety nets and operate in a free market, capital based economy which happens in various countries.
OK, we’re going full blown Austrian economics now! (In good humor of course!). At its core a free market economy is about allowing the dispersed knowledge of society to be applied to economic decisions. This is done by allowing all participants to act in their own self interest. The belief, which has been proven true time after time, is that the greatest wealth will be created by allowing this to happen.
Those who make good decisions gain control over more resources, allowing their decision making to create even greater wealth. Those who make poor decisions lose resources and have less effect.
Government’s appropriate role is to create the environment where this activity is protected and promoted. Frederic Bastiat laid out the appropriate role of government in society as well as anyone ever has.
Borrowing money is not necessary to drive wealth creation, although done properly it can be used to accelerate good decisions (it also accelerates the outcome of bad decisions).
Are we encouraged to borrow? Absolutely. Do we have to borrow? Absolutely not.
Would our society prosper without irresponsible borrowing? I believe that it would, but I don’t think we will ever see it. People are far too addicted to instant gratification for that to happen.